Nikkei holds positive technical tone

By FXStreet FXStreet (Córdoba) – The Japanese Nikkei ended Wednesday marginally higher at 19.691.39, up by 20 points, as financial markets failed to find a trigger. Chinese data released overnight resulted pretty much as expected, with retail sales up by 11.0% in October against previous 10.9%, while industrial production ticked lower, down to 5.6% from a previous 5.7% in the same month, and compared to a year before.

A stronger Japanese Yen, however, limited the intraday gains, as the local currency appreciated against most of its major rivals.

Nikkei technical perspective

“Ahead of the Asian opening, the index holds near the mentioned high and the daily chart supports the ongoing positive tone, given that the index continued advanced far above its moving averages. In the same chart however, the technical indicators are giving some signs of exhaustion towards the upside near overbought levels, suggesting that is possible a downward corrective move”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, and according to the 4 hours chart, the upside remains favored, as the index holds well above a bullish 20 SMA, whilst the Momentum indicator bounced from around its 100 level, and the RSI indicator holds around 66”.

Support levels: 19,615 19,527 19,440. …read more

Source:: FX Street